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#1905995 - 03/17/14 05:33 PM Internal LTV Limit vs Supervisory Limit
bgehres Offline
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Joined: Mar 2005
Posts: 126
We have a bank policy that limits the LTV on improved real estate to 80%. If we make a loan over our policy limit of 80% and under the supervisory limit of 85%, do we include this loan on our normal loan exceptions report and leave it off of the supervisory LTV report and calculation?

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Lending Compliance
#1906017 - 03/17/14 06:14 PM Re: Internal LTV Limit vs Supervisory Limit bgehres
rlcarey Online
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Joined: Jul 2001
Posts: 80,827
Galveston, TX
It does not go on the supervisory LTV report. How you choose to handle bank policy violations is up to you. Why bother having a more restrictive policy if you are going to violate it?
The opinions expressed here should not be construed to be those of my employer:

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#1906058 - 03/17/14 07:11 PM Re: Internal LTV Limit vs Supervisory Limit bgehres
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Well, it is pretty common in credit policy to have standards that you want for most loans, and allow for exceptions subject to certain conditions (mitigating factors) and track and possibly have a limit on just how many exceptions. Writing a credit policy without exceptions doesn't work.
Kathleen O. Blanchard, CRCM "Kaybee"
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